RHG board recommends takeover offer

THE board of mortgage business RHG - formerly RAMS Home Loans - has recommended its shareholders accept a $145.3 million takeover deal.

The RHG board unanimously recommended shareholders accept the offer from fellow mortgage business Resimac which will see shareholders paid 44.1 cents per share.

RHG also said it would pay investors a fully-franked dividend of three cents per share.

Taken together, the cash payment received by shareholders would represent a 17.8 per cent premium on the company's 40 cent closing share price on Friday.

"The RHG Board unanimously recommends that RHG shareholders vote in favour of the scheme, in the absence of a superior proposal and subject to the independent expert concluding and continuing to conclude that the Scheme is in the best interests of RHG shareholders," the company said in a statement on Monday.

RHG said it would send shareholders a booklet in mid to late August outlining details of the scheme of arrangement with Resimac.

RAMS was floated on the Australian stock market in 2007, but the company was badly affected by the US subprime mortgage crisis and the brand was sold to Westpac.